Jakarta (ANTARA) - Village-run enterprises (BUMDes) constitute vital instruments for elevating the living standards of people inhabiting Indonesian rural regions, according to Villages, Development of Disadvantaged Regions, and Transmigration Minister Abdul Halim Iskandar.

"BUMDes are important instruments for boosting the welfare of villagers," he remarked during a sustainable village awarding ceremony in Jakarta on Tuesday.

Iskandar noted that several BUMDes had achieved a range of feats since the government began paying closer attention to them in 2021. He said the achievements reflect the vital role played by such enterprises.

Last year, he remarked that as many as 10,886 rural governments placed capital totaling Rp1.16 trillion (US$72.3 billion) in BUMDes, with an average of Rp44.23 million (US$2.7 thousand) per village.

"The advantage of the fund is that it does not bear interests, as it is allocated from village budgets," he pointed out.

He further remarked that at the end of 2023, BUMDes allocated some portions of their profits to the village budgets, with the total value reaching Rp162.99 billion (US$10.1 million), or Rp14.97 million (US$932 thousand) per village.

The minister said the figures indicate that rural governments had started to benefit from BUMDes.

"The turnover generated by BUMDes indicates that such enterprises play a role of economic catalyst in villages," he stated.

He then underscored that on an annual basis, BUMDes have been managing around Rp3.06 trillion (US$190.6 billion) of rural assets, adding that such enterprises have also empowered a total of 331,232 villagers, including 123,119 women from poor families.

"All those feats achieved by BUMDes have made us realize the importance of managing local economies, especially for underprivileged villagers," the minister concluded.

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Translator: Tri M, Tegar Nurfitra
Editor: Azis Kurmala
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